Inheritance tax and law

May 03, 2018

The Global Property Guide looks at inheritance from two angles: taxation, and what inheritance laws apply to foreigners leaving property in Venezuela: what restrictions there are and whether making a will is advisable.

INHERITANCE TAX

How high is income tax on residents in Venezuela?

There are gift and inheritance taxes in Venezuela. The tax rates vary depending on the value of the inheritance and the relationship between the benefactor and the beneficiary.

The taxable inheritance is computed by deducting the following from the market value of the gross estate:

Any debts owed by the deceased, including taxes (as duly substantiated by proper documents)

Death, funeral, and related expenses

Attorney's fees incurred during the process of allocating the inheritance and assessing the tax liabilities

The inheritance tax is levied on the gross share of each recipient. The recipients are classified into different categories, depending on their relation with the deceased:

The taxation of residents in Venezuela is in tax units (unitaria tributaria, TU), which is an adjustment index. The tax bands are all in tax units, whose monetary value changes depending on the changes in the consumer price index. The tax unit or TU (unitaria tributaria) for 2017 is VEF300 (US$0.0038).

INHERITANCE TAX

TAX RATE

TAX RATES FOR DIFFERENT CATEGORIES

IN TAX UNITS, (TU)

I

II

III

IV

Up to 15

1%

2.5%

6%

10%

15 - 65

2.5%

5%1

2.5%

15%

65 - 165

5%

10%

20%

25%

165 - 415

7.5%

15%

25%

30%

415 - 915

10%

20%

30%

35%

915 - 1,915

15%

25%

35%

40%

1,915 - 5,915

20%

30%

40%

45%

Over 5,915

25%

40%

50%

55%

Venezuela - More data and information

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